Al Franken’s Complex Legacy and the Credit Rating Business

Al Franken’s announcement of his pending resignation completes his descent from Progressive Saint to something of a pariah figure. But like others whose stars have fallen during this moment of Continue ReadingAl Franken’s Complex Legacy and the Credit Rating Business

Republicans Immunize Rating Agencies from Accountability in Financial Choice Act

No government regulation will ever apply to any rating agency that the government regulates, according to the Financial Choice Act. This bill would eliminate accountability for nationally recognized statistical rating Continue ReadingRepublicans Immunize Rating Agencies from Accountability in Financial Choice Act

Coping with Reliance on Credit Ratings

This blog article summarizes a recent article published in Banking and Financial Services Policy Report.Reference: Norbert J. Gaillard, “Coping with Reliance on Credit Ratings”, Banking and Financial Services Policy Report, Continue ReadingCoping with Reliance on Credit Ratings

Efficient, commonsense actions to foster accurate credit ratings

This blog article summarizes a recent article published in Capital Markets Law Journal. Reference: Norbert J. Gaillard and William J. Harrington, “Efficient, commonsense actions to foster accurate credit ratings”, Capital Continue ReadingEfficient, commonsense actions to foster accurate credit ratings

SEC Shines a Light on Inflated CMBS Ratings

On January 21, S&P settled a number of complaints with the Securities and Exchange Commission as well as two states’ attorneys general.  The issues primarily involved ratings of Commercial Mortgage Continue ReadingSEC Shines a Light on Inflated CMBS Ratings

Entire Financial System Needs Commonsense Review of Derivative Contracts: Let’s Start with ABS

Wikirating is publishing two letters and one e-mail in which I map risks to an asset-backed security (ABS) when the issuer is party to a swap contract, a widely used Continue ReadingEntire Financial System Needs Commonsense Review of Derivative Contracts: Let’s Start with ABS